Africa And The Global Economic Crisis: A Risk Assessment And Action Guide
It is increasingly apparent that, despite earlier hopes, the global economic crisis will have a significant impact on the economies of Sub-Saharan Africa. In order to co-ordinate and craft the most appropriate responses for African economies to withstand and recover from the crisis, it is necessary to identify the degree to which the continent, as well as the individual African countries, is at risk of being negatively impacted. This depends on both vulnerability to trade and financial shocks, as well as the resilience of countries to cope with these shocks. Accordingly, vulnerability and resilience indices are constructed for the continent and individual countries. It is shown that, of all developing regions, Africa is the most at risk from the crisis: it has higher vulnerability to trade and financial shocks, and it has the least resilience of all regions. Based upon a vulnerability-resilience matrix, the African countries most at risk are the Democratic Republic of the Congo, Burundi, Côte D'Ivoire, Liberia, Angola, the Sudan, Chad, Guinea-Bissau, Guinea, Zimbabwe, Somalia, Kenya, Mali, Nigeria, Ghana, Cape Verde and Mauritania. With a few notable exceptions, such as Kenya and Ghana, these are all 'fragile states'. Based upon the distinction between vulnerability and resilience, an action guide is proposed. This makes a distinction between short-term and longer-term actions, in particular be-tween actions aimed at mitigating the impact of the external shocks, assisting countries to cope, and actions aimed at reducing risk.
|Date of creation:||29 Jan 2010|
|Contact details of provider:|| Postal: Convento, Via delle Fontanelle, 19, 50014 San Domenico di Fiesole (FI) Italy|
Web page: http://www.eui.eu/RSCAS/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John B. Taylor, 2009. "The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong," NBER Working Papers 14631, National Bureau of Economic Research, Inc.
- Naudé, Wim & Saayman, Andrea, 2005. "Determinants of tourist arrivals in Africa: a panel data regression analysis," MPRA Paper 16479, University Library of Munich, Germany.
- Benno J. Ndulu, 2007. "Challenges of African Growth : Opportunities, Constraints, and Strategic Directions," World Bank Publications, The World Bank, number 6656, July.
- Carment, David & Prest, Stewart & Samy, Yiagadeesen, 2008. "Determinants of State Fragility and Implications for Aid Allocation: An Assessment Based on the Country Indicators for Foreign Policy Project," Working Paper Series RP2008/46, World Institute for Development Economic Research (UNU-WIDER).
- Eichengreen, Barry & Mody, Ashoka & Nedeljkovic, Milan & Sarno, Lucio, 2012.
"How the Subprime Crisis went global: Evidence from bank credit default swap spreads,"
Journal of International Money and Finance,
Elsevier, vol. 31(5), pages 1299-1318.
- Barry Eichengreen & Ashoka Mody & Milan Nedeljkovic & Lucio Sarno, 2009. "How the Subprime Crisis Went Global: Evidence from Bank Credit Default Swap Spreads," NBER Working Papers 14904, National Bureau of Economic Research, Inc.
- Barry Eichengreen & Ashoka Mody & Milan Nedeljkovic & Lucio Sarno, 2012. "How the Subprime Crisis Went Global: Evidence from Bank Credit Default Swap Spreads," Working papers 21, National Bank of Serbia.
- Arbache, Jorge Saba & Page, John, 2007. "More growth or fewer collapses ? a new look at long run growth in Sub-Saharan Africa," Policy Research Working Paper Series 4384, The World Bank.
- W. A. Naude & W. F. Krugell, 2007. "Investigating geography and institutions as determinants of foreign direct investment in Africa using panel data," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1223-1233.
- Nancy Birdsall, 2007.
"Do No Harm: Aid, Weak Institutions and the Missing Middle in Africa,"
Development Policy Review,
Overseas Development Institute, vol. 25(5), pages 575-598, 09.
- Nancy Birdsall, 2007. "Do No Harm: Aid, Weak Institutions, and the Missing Middle in Africa," Working Papers 113, Center for Global Development.
- Lino Briguglio & Gordon Cordina & Nadia Farrugia & Stephanie Vella, 2009.
"Economic Vulnerability and Resilience: Concepts and Measurements,"
Oxford Development Studies,
Taylor & Francis Journals, vol. 37(3), pages 229-247.
- Briguglio, Lino & Cordina, Gordon & Farrugia, Nadia & Vella, Stephanie, 2008. "Economic Vulnerability and Resilience: Concepts and Measurements," Working Paper Series RP2008/55, World Institute for Development Economic Research (UNU-WIDER).
- Baliamoune-Lutz, Mina N. & McGillivray, Mark, 2008. "State Fragility: Concept and Measurement," Working Paper Series RP2008/44, World Institute for Development Economic Research (UNU-WIDER).
- Cannon, Terry, 2008. "Reducing People?s Vulnerability to Natural Hazards: Communities and Resilience," Working Paper Series RP2008/34, World Institute for Development Economic Research (UNU-WIDER).
- Naude, Wim & Matthee, Marianne, 2007. "The Significance of Transport Costs in Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- W. A. Naudé, 2004. "The effects of policy, institutions and geography on economic growth in Africa: an econometric study based on cross-section and panel data," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(6), pages 821-849.
- Nicola Gennaioli & Ilia Rainer, 2007. "The modern impact of precolonial centralization in Africa," Journal of Economic Growth, Springer, vol. 12(3), pages 185-234, September.
- Paul Collier, 2006. "African Growth: Why a 'Big Push'?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 188-211, December.
- Jutta Bolt & Dirk Bezemer, 2009. "Understanding Long-Run African Growth: Colonial Institutions or Colonial Education?," Journal of Development Studies, Taylor & Francis Journals, vol. 45(1), pages 24-54.
- Fosu, Augustin Kwasi & Naude, Wim, 2009. "The Global Economic Crisis: Towards Syndrome-Free Recovery for Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
When requesting a correction, please mention this item's handle: RePEc:rsc:rsceui:2010/27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RSCAS web unit)
If references are entirely missing, you can add them using this form.